Why a Weaker Dollar Is Actually Widening the Trade Deficit

The US trade deficit jumped $23 billion in May to $77.6 billion, even as the dollar weakened. Economist Lucas explains the J-curve effect: why currency depreciation initially makes the trade balance worse before improving it. We dive into the May data, the role of import prices from China at a 17-year high, and how the Fed is watching these numbers for inflation signals. Plus, the mixed currency picture—dollar weaker against the euro, stronger against the yen—and what it means for the trade outlook. #Economics #TradeDeficit #JCurve #Dollar #FederalReserve #Imports #Exports #MayTradeData #ImportPrices #ChinaTrade #CurrencyDepreciation #BalanceOfPayments #USDIndex #USExports #TradeBalance #Inflation #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo